Natural-Gas Boom's Flip Side

Abundance Aids Consumers and Industry, but Some Energy-Rich States Feel Tax Hit

By

Kris Maher and

Daniel Gilbert

November 25, 2012

BUCKHANNON, W.Va.— The boom in U.S. natural-gas production has driven economic growth across much of the country, but not everyone is a winner, including this rural town in Appalachia, rich in natural gas and coal.

A glut of natural gas has pushed prices lower for both gas and coal, which compete to supply electricity. This has lowered energy costs for homes and businesses, given a crucial competitive advantage to manufacturers that...